Fostoria staff outline modest water and sewer rate increases, auditor explains fiscal-emergency termination process

City staff told the finance committee they plan modest increases to household water and sewer bills beginning January and will present formal rate legislation at the next council meeting.

Finance staff said the water-rate change for households of two to four people is projected to increase by about $1.30 to $2.00 per month beginning in January. Council will be asked to approve sewer-rate legislation at the next meeting; staff estimated sewer bills for similar households would rise roughly $1.80 to $2.30 per month. Staff stressed they attempted to keep rate increases modest by using one-time funds where possible and by transferring revolving-loan reimbursements back into the water fund to avoid embedding costs into ongoing rates.

Cindy McCafferty of the Auditor of State’s Local Government Services explained the process if the city were to petition to end its fiscal-emergency status. She said the financial planning commission would request the auditor’s office prepare a termination report, which involves forecasting, an accounting-methods review, and re-evaluating six conditions that were originally required when the city entered fiscal emergency. McCafferty said any termination determination must be based on actual Dec. 31 numbers rather than forecasts and that the auditor’s office would prepare the termination report when requested.

Staff also noted a correction to the recovery-plan packet that will be reflected in the final legislation: a $275,000 reimbursement from a revolving loan account will increase the water fund’s other revenue and change one line item from $500,000 to $775,000 in the revolving-loan fund section.

The committee was told the recovery-plan first reading will take place tonight, with a second reading at the first December council meeting and a request to suspend the three-reading rule to accelerate planning commission review.